Grant Thornton An employer's reporting for a defined benefit pension is a joint effort between two professions: actuarial science and accountancy. An employer provides demographic and salary information about the current work force to an actuary who then computes a pension obligation and service cost in accordance with the provisions of the plan. While the actuary is responsible for the calculations, it is the accountant's responsibility to ensure that the assumptions, methods, and disclosures comply with generally accepted accounting principles. This exercise is designed confirm your understanding of defined benefit pension reporting net periodic benefit cost, including: The accounting for acquisition of pension plan in a business combination The components of net periodic benefit cost The components of other comprehensive income The factors that determine the change in the pension obligation during a reporting period The factors that determine the change in the plan assets during the year The amounts recognized on the statement of financial position as a net pension asset or liability The amounts recognized in accumulated other comprehensive income The accounting for a retroactive plan amendment Minimum amortization of cumulative actuarial gains and losses This will be accomplished by your completing the required disclosures and journal entries for initial acquisition of a subsidiary with a defined benefit pension plan and the accounting for events and changes in the three subsequent years. For each period, you will be provided with information about changes in the plan obligation and asked to determine the funded status, disclosure for the change in the funded status, net periodic benefit cost, other comprehensive income, and accumulated other comprehensive income. Let's get started Grant Thornton An employer's reporting for a defined benefit pension is a joint effort between two professions: actuarial science and accountancy. An employer provides demographic and salary information about the current work force to an actuary who then computes a pension obligation and service cost in accordance with the provisions of the plan. While the actuary is responsible for the calculations, it is the accountant's responsibility to ensure that the assumptions, methods, and disclosures comply with generally accepted accounting principles. This exercise is designed confirm your understanding of defined benefit pension reporting net periodic benefit cost, including: The accounting for acquisition of pension plan in a business combination The components of net periodic benefit cost The components of other comprehensive income The factors that determine the change in the pension obligation during a reporting period The factors that determine the change in the plan assets during the year The amounts recognized on the statement of financial position as a net pension asset or liability The amounts recognized in accumulated other comprehensive income The accounting for a retroactive plan amendment Minimum amortization of cumulative actuarial gains and losses This will be accomplished by your completing the required disclosures and journal entries for initial acquisition of a subsidiary with a defined benefit pension plan and the accounting for events and changes in the three subsequent years. For each period, you will be provided with information about changes in the plan obligation and asked to determine the funded status, disclosure for the change in the funded status, net periodic benefit cost, other comprehensive income, and accumulated other comprehensive income. Let's get started
